Leadership Financial Value Creation Capability Research

This article is for leaders, board members, investors, coaches, and consultants seeking to understand the research behind which leadership financial behavior competencies drive financial value creation capability.

If you are seeking to examine how leadership financial behavior from the CEO down can increase profits, then read on further.

DNA Behavior Leadership Financial Behavior Research Process 

A July 2024 scientific study of the leadership financial behavior of 4,859 Key Executives from 495 of the S&P 500 companies was undertaken using the AI-driven DNA Digital Scan Process.  

The DNA Digital Scan is an independent and unbiased psychometric behavioral assessment conducted without direct leader participation, based on proven publicly available data points. No privately held data about the leader is accessed. 

For the current CEO and up to 9 of the Key Executives of each S&P 500 company, the key data points accessed by the digital scan process are used to feed the DNA Natural Behavior psychometric process for scoring the population-weighted strength of everyone’s natural “hard-wired” leadership financial behaviors in two primary categories and six competencies, as follows: 

Part 1: Operational Leadership Capability: 

1. Results Drive
2. Relationship Engagement 

Part 2: Leadership Financial Performance: 

1. Financial Goal Drive 
2. Innovation Focus 
3. Fiscal Control
4. Financial Performance 

The DNA Digital Scan process has 75% to 80% psychometric reliability for measuring behavior, utilizing unique algorithms developed by DNA Behavior since 2001.

The individual leadership financial behaviors were combined into an overall leadership team profile for each S&P 500 company (495 companies reviewed). Each of the companies was ranked for the behavioral strength of each competency. 

We identified the potential strength of the CEO’s influence on the organizational decision-making and dynamics through their Authority Bias relative to the combined team (for 495 company CEO’s). 

DNA Behavior Research Results

Our research demonstrates that the overall financial profitability of a business relative to industry peers will be higher if the CEO and Key Executives have a strong combination of all six financial behavior competencies shown in the table below and can effectively work as a team to utilize each other’s strengths and manage their struggles. 

Financial Value Creation Capability Impact on Financial Value Trajectory 

However, our research shows that the financial value trajectory of a business is likely to be higher for those specific companies that have CEO’s and Key Executives who have a stronger “Financial Value Creation Capability” score when each of the following three competencies is combined:  

1. Financial Goal Drive 
2. Innovation Focus
3. Fiscal Control 

CEO Authority Bias 

The research shows that 81% of the CEO’s will have a higher Authority Bias and therefore be expected to exert a more dominant influence over their business’s financial behavior and culture. Although, the 42% of CEO’s with the Influencer Unique DNA Style will have a relatively lower overall Financial Value Creation Capability Score. Therefore, they will need to ensure they have the right Key Executive Team to optimize the overall performance of their business.

Still Need Help? 

 If you would like to read our detailed Leadership Financial Value Creation Capability Report and/or have further questions about how these financial behavior insights may be applied, please contact us at dnacare@dnabehavior.com.